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Fed Triggers Emerging Response

By

David Reilly

Updated Nov. 10, 2010 12:01 a.m. ET

Sometimes you do have to fight the Fed. That is the conclusion many emerging economies are coming to as they grapple with rising currency values and soaring commodity prices, partly thanks to the latest bout of bond buying by the Federal Reserve.

One response is capital controls. China and Taiwan on Tuesday said they were imposing new controls meant to restrict the flow of so-called hot money. Korea and Indonesia are considered candidates to do so, too. Brazil in October increased some existing controls. Even staunch...